A new study has found that plain packaging of cigarettes in Australia has been unsuccessful in reducing smoking rates and has instead increased sales of illicit tobacco.

The study was conducted by leading auditors KPMG for 3 major cigarette manufacturers, British American Tobacco Australia, Imperial Tobacco Australia and Philip Morris, to review the impact of plain packaging, the Daily Express reported.

The study found that the country's illegal tobacco trade has escalated to a record 13 percent over the last year, and not reduced, the first time since 2009.

The findings also showed that branded illegal cigarettes, which carry no health warnings, are being sold for as low as 6 dollars that is less than a third of the price of some legal brands.